feedyard Talk. 2/24. 1:54 am

[sw363535]

Local land sale is still the talk of the town.  Not always enthusiasm after a few nights sleep.

Question persists.   What stops the never ending ramble of the "music" man?  The man who talked for nearly 6+ solid hours. Reframing a done sale many many times.  Is it finally convincing half the crowd that nothing will sell today?  they leave bewildered at an auction that reopens the bid logrimithicly (yes Siri it is misspelled intentionally)?   

Was it the fact that finally the big bidder gets tired of dancing with an auctioneer and his computer while leaving the building?  Or the fact that in this building with its laptop/cellphone limitless use of technology by the sellers agent, wifi was blocked for all bidders present (seemed like a Gatling gun vs bow n arrow contest)?

Had the seller actually (really?) turned down a much larger bid privately?  Or was that just part of the "putting on the show"? (the way I feel following professional baseball in recent years, all pro sports feel like pro wrestling back in the 1960's on steroids with statistical "sprinkles").

Or did the "music" man just finally tick off every last person holding the glossy brochure?  And why did I finally feel like technology had just tarnished another good "ole" American tradition...... the "auction" process?

Markets....... tonite......... can we do this three nites in a row?  Might be the question of the day......

Beans say yes........ +8.   at.   $14.16.        

corn, wheat, and cotton    say ......maybe.     Corn at   +0.6.   at   $5.5325       Hrw. at  +1.    6.4825.  

and cotton  -0.39  at 92.28

And Cattle say we're sunning and taking a bit of a down day in the wonderful sunshine......

Live cattle..... ironic our labels ... the waddling fats......      -1.85.  at  $121.20

Feeders...... went belly up soaking up sum......        -0.675. @  $142.60

Lean hogs who never go outside these days ..... are unaware.......   +1.30.    at   86.425

Ranchers and farmers alike are in shirtsleeves repairing water lines that were for sure at 4 ft bury and often float up to 28 inches of depth.  Problems often surface after winter blasts.... 

All are smiles and just happy to have survived....( Live cattle don't always laugh at that joke).  

Have a full day!!!!!!

[timetippingpt]

For those of us that don't know how the auction went. Can you give us a few details instead of the rambling prose? Thanks

[nitefarm]

Time if I remember correctly 14 bidders bought the 41tracts. 3 local people won their bids and I think it averaged 3400+ per acre. I’m sure someone knows a lot more than that. 

[Hobbyfarmer]

Mato Grosso Soybeans - The soybeans in Mato Grosso were 34.5% harvested late last week compared to 73% last year and 58% average according to the Mato Grosso Institute of Agricultural Economics (Imea). This represented an advance of 12% for the week. The soybean harvest is 38% behind last year's pace. The most advanced harvest is in the western part of the state where 49.5% of the soybeans have been harvested. The slowest harvest is in the south-central part where 20% of the soybeans have been harvested.

In the municipality of Claudia, which is located in northern Mato Grosso, farmers had harvested 20 to 30% of their soybeans until heavy rains last week paralyzed harvest activity. Soybean yields were good, in the range of 70 to 75 sacks per hectare (62.5 to 67 bu/ac) and farmers are hoping they will stay good once harvesting resumes. The soybeans that have been harvested are higher in moisture than desired, but there have not been any major quality problems thus far.

  in the municipality have forward contracted the majority of their anticipated soybeans in the range of R$ 75.00 to R$ 80.00 per sack (approximately $6.45 to $6.85 per bushel), which is much lower than the current price of R$ 140.00 per sack (approximately $12.00 per bushel). Farmers are hoping for good yields so they will have supplies of soybeans to sell at the higher prices. 

[k-289]

SW -  are  you  leaning  towards  a  notion  the  auction  was  handled  in  a  '' ''  Ercot  " "  manner - ? 

[Hobbyfarmer]

Pointless Interest:

A butt is a real unit of measurement for a cask of wine.

A buttload is about 108 Imperial gallons.

[sw363535]

Point taken Hobby ---- thanks for the great SA entry.

Time,,,,,,each tract was auctioned off       41 auctions in 1.5 hours..... included small tracts, grain storage, small feedlot, and irrigation projects,,,, some drylands CRP grass, some pasture.  Mostly irrigation. 80%

combined auction.         1 auction

opened up for first auction bidders to raise their bids to knock off winner....        1 auction..    1 hour

reopened for anyone to bid for multiple tracts.  each combination became an auction for the multiple. (8-9-13 through 18) was one I remember...                 at least 30 small auctions ....

reopened for anyone who wanted to bid a tract out of a group.....   at least 15 more ......

half of crowd left and big bidder walked out  then announced that bids were on a time clock used 5 minute timer for 15 minutes, then 3 minute timer for 20 minutes, then a 1 minute timer. at least three times. 

A Computer leader board was displayed on the wall that detailed changes in top bidder for each tract or combination of tracts.     Finally declared it over.

A sliding scale for minimum raises penalized large buyers.    example. two local bidders were able to break tracts out of combinations by raising bids in the last few minutes and adding 10k to their winning bid which forced the combination bidder into the level that required the combo bidder to raise 50k minimum ----- 2 of the 3 local winners(depending on viewpoint)

Time it was a complicated computer game that combined quick learning, questionable ethics in "rules of engagement" like minimum bid inequity, combined with pooling quite different types of property and total disregard for soil type or quality.  Beautifully done.   All overriden by what is perceived as good water and the depletion of water around it....

From a mathematics standpoint it was a work of art.  Nothing near a simple sale open to all bidders.  Drove off the top bidder and by process, drove off the smaller investor...   If that large investor had bid with 4 different numbers he would have gotten what he wanted -- cheaper maybe.  

Worst quality land and best quality land brought near 5k per acre... average  3367.   feedlot 6k head  400,000.  

2.8 million bu storage including 1.6 m of ground storage. brought 4 million dollars.....   and Its over.... and there will be future resales.  

I think it is worth study as one of the multitude of ways computer programming has become overly dominant in society  and in many ways (including farm data management) all fluff and small value.

stay focused

[gurly3801539]

What reason did they use for blocking wi-fi to the bidders. 

[timetippingpt]

SW, Thank you so much for going in to such detail.

We have been forcing all of our next generation to go to every auction that occurs, basically just to get used to the pomp and circumstance. And yes, the computer technology, and the different rules, are somewhat overwhelming, even to me.

Also agree that it might not get max value IF they screw up the tract specific rules, that said however, in all the auctions I've attended in our area, the multiple tract, multiple group, mult x mult options have indeed raised the selling prices. Of course, we have a mountain of non-farm generated money to be placed in real estate in C-IN so that does make a difference. Tracts 5 miles south now go for north of $30k an acre and that is just the starting point. Couple along the interstate went for  north of $120k an acre last month (of course, sold by the sq ft not the acre).

Funny, I know the family farm that sold it for $30k a couple of years ago. They thought they were the smart ones! 🙂  Kind of like me selling the 2020 corn crop....Oh well, it was a great financial year regardless of my many mistakes.

[sw363535]

We needed this fall badly, marketing wise...... marketing is fun again if the drought doesn't swing back our way.  this is a high risk production area that has.

This sale was enhanced by ever dwindling water issues.  And ever increasing costs of pumping.  One overriding question after the sale ..... do we spend competitively to get the deep expensive water or do we adjust to survive the disappointment... Those with the funds to gamble better know the area...  every time we sell in the 5k range it resells at lower prices as the investors see cost of water...... Most of this will be $700/a ground without water and communities who are loosing population..... all around..... 

He might have left near 8 million on the table by not taking the big offer and avoiding the sale.  He wanted the neighbors to have a shot..... not sure they really did either way.    Doesn't those big dollars per acre actually push agriculture off the land in time?

Winter wheat comments tomorrow around the Feedyard.